10/2/2016
TNCs: The Latest Scoop
Presented by: Donna M. McKenna
MAIA VP of Communications
October 29, 2016 – 3:15 – 4:15 PM
Please turn off cell phones.
1
10/2/2016
Ride-Sharing: What Every Agent
Should Know About It
Ride-Sharing: What Every Agent
Should Know About It
This program is designed to provide accurate and
authoritative information in regard to the subject matter
covered. It is provided with the understanding that the
publisher is not engaged in rendering legal, accounting, or
other professional service. If legal advice or other expert
assistance is required, the services of a competent
professional person should be sought.
2
10/2/2016
What is Ride‐Sharing?
There are three different types of ride-sharing or car-sharing
programs. Here is a brief description of the major services:
1. Uber/Lyft/SideCar: These services, known has
transportation network companies, use smartphone
communications technology to allow customers to hail a
driver electronically to provide them with a ride for a fee.
2. FlightCar/Turo (formerly RelayRides)/Getaround and
Other Ride-Sharing Services: These services help a
vehicle owner rent his/her car to others for a fee.
3. Zipcar/uhaulcarshare: This is a service where Zipcar/
uhaulcarshare members rent cars owned by Zipcar or
uhaulcarshare for personal or business use.
Insurance for Ride‐Sharing Vehicles: How it Works …
Since most of the vehicles involved in the first two types of ridesharing services are most likely insured under a MAP, here is how
the policy would (or would not) respond to a claim:
1. Uber/Lyft/SideCar:
If you are the driver or owner of the vehicle:
A. You do NOT meet most company MAP eligibility criteria
B. The MAP excludes coverage for “anyone injured while occupying
your auto while it is being used as a public or livery conveyance.”
C. Specifically excludes Property Damage and all Optional
Insurance Parts
D. Vehicles used in this manner would not be eligible for the MAIP
or CAR but could be eligible for the Taxi/Limo/Car Service
program … but only if they display taxi or livery plates.
3
10/2/2016
Insurance for Ride‐Sharing Vehicles: How it Works …
1. UBER/Lyft/SideCar:
There’s an issue with the plate type for these transportation
network vehicles. Here is how the plate definition regulation
540 CMR 2.05 defines these companies, vehicles and drivers
under the Private Passenger Plate definition:
Insurance for Ride‐Sharing Vehicles: How it Works …
1.
UBER/Lyft/SideCar:
TNC Definitions:
• Transportation Network Company is a corporation,
partnership, sole proprietorship, or other entity operating in
Massachusetts that, for consideration, will arrange for a
passenger to be transported from an agreed-upon point of
departure to an agreed upon destination by a driver. A
Transportation Network Company must hold a valid
Transportation Network Company Certificate issued by the
Department of Public Utilities or a notice issued by the
Department of Public Utilities within the preceding six
months certifying that, as of the date of the notice, the
Department of Public Utilities is not issuing Transportation
Network Company Certificates.
4
10/2/2016
Insurance for Ride‐Sharing Vehicles: How it Works …
1.
UBER/Lyft/SideCar:
•
Transportation Network Company Driver or TNC Driver is an
individual who, on behalf of a Transportation Network
Company, provides Transportation Services to TNC Riders.
•
Transportation Network Company Rider or TNC Rider is any
passenger who is transported by a TNC Driver for
consideration and whose transportation is arranged by a
TNC.
•
Transportation Services are the transportation of a
passenger between points chosen by the passenger for
consideration.
Insurance for Ride‐Sharing Vehicles: How it Works …
1. UBER/Lyft/SideCar:
Private Passenger Motor Vehicle, is any vehicle:
(a) which has a vehicle weight rating or curb weight of 6,000 lbs.
or less as per manufacturer's description of said vehicle or is a
sport utility vehicle or passenger van; or which is a pickup truck
or cargo van of the ½ TON, ¾ TON or one TON class as per
manufacturer's description of said vehicle; or which is a vehicle
used solely for official business by any college or university
police department whose officers are appointed as special
police officers by the colonel of the state police under M.G.L.
c. 22C, § 63; and,
5
10/2/2016
Insurance for Ride‐Sharing Vehicles: How it Works …
1.
UBER/Lyft/SideCar:
Private Passenger Motor Vehicle, is any vehicle:
(b) which, if a pickup truck or cargo van, is registered or leased
to an individual, and is used exclusively for personal,
recreational, or commuting purposes; and,
(c) which, other than a Personal Transportation Network Vehicle,
is not described in elsewhere in 540 CMR 2.05. Pleasure Vehicle,
Passenger Vehicle, Passenger Car, Automobile and Pleasure
Passenger vehicle are synonymous with Private Passenger
Motor Vehicle as defined in 540 CMR 2.05: Private Passenger
Motor Vehicle. For the avoidance of doubt, Private Passenger
Motor Vehicle shall include, but not be synonymous with,
Personal Transportation Network Vehicle.
Insurance for Ride‐Sharing Vehicles: How it Works …
1. UBER/Lyft/SideCar:
If you are a passenger in the vehicle:
A. Your own policy’s Personal Injury Protection, Uninsured
Motorist, Optional Bodily Injury, Medical Payments, and
Underinsured Motorist coverages follow you as a
passenger in your own vehicle or someone else’s vehicle.
B. Your policy would not be primary. The owner’s policy must
pay its limits before your policy will respond.
6
10/2/2016
Insurance for Ride‐Sharing Vehicles: How it Works …
2. FlightCar/Turo/GetAround and Other Ride-Sharing Services:
If you are the owner of the vehicle:
A. Your vehicle would not qualify for a MAP because the vehicle
does not meet the private passenger definition: a motor
vehicle of the private passenger or station wagon type that is
owned or leased under contracts for a continuous period of
at least twelve months by one or more individuals, excluding
(1) partnerships, (2) corporations, (3) unincorporated
business associations, and (4) other legal business entities
with a federal employer identification number, and is not
used as a public or livery conveyance nor rented to others.
Insurance for Ride‐Sharing Vehicles: How it Works …
2. FlightCar/Turo/GetAround and Other Ride-Sharing Services:
If you are the driver (renter) of the vehicle:
A. Your policy’s Personal Injury Protection, Uninsured Motorist,
Optional Bodily Injury, Medical Payments and Underinsured
Motorist Coverage will follow you as the driver of someone
else’s vehicle.
B. Your Collision, Limited Collision and Comprehensive
Coverages on non-owned private passenger vehicles as long
as you don’t regularly use the rented vehicle.
C. Your insurer would be looking for the owner’s policy to pay
its limits first.
7
10/2/2016
Insurance for Ride‐Sharing Vehicles: How it Works …
2. FlightCar/Turo/GetAround and Other Ride-Sharing Services:
If you are a passenger in the vehicle someone else is renting:
A. Your policy’s Personal Injury Protection, Uninsured Motorist,
Optional Bodily Injury, Medical Payments and Underinsured
Motorist Coverage will follow you as a passenger in your own
or someone else’s vehicle.
B. Your insurer would be looking for the owner’s policy to pay
its limits first.
Insurance for Ride‐Sharing Vehicles: How it Works …
3. Zipcar/uhaulcarshare:
If you are the driver of the vehicle:
A. Zipcar/uhaulcarshare members are free to drive cars by
the hour or day with gas and insurance included. Sedans,
hybrids, vans and more are available in neighborhoods,
cities and airports around the world.
B. If the member has a personal auto policy, the policy would
follow the member when renting a personal automobile
with the permission of the owner as long as the member is
not regularly using the same car. If the member will use
the same car often, the “Use of Other Auto” endorsement
could be added.
C. Extension of the coverage under the personal auto policy
is not worldwide and would be limited to the U.S., U.S.
territories and possessions, Puerto Rico and Canada.
8
10/2/2016
Insurance for Ride‐Sharing Vehicles: How it Works …
3. Zipcar/uhaulcarshare:
If you are a passenger in the vehicle:
A. If you are a passenger in a car someone else is renting from
Zipcar or a similar service, your policy’s Personal Injury
Protection, Uninsured Motorist, Optional Bodily Injury,
Medical Payments and Underinsured Motorist Coverage
will follow you as a passenger in your own or someone
else’s vehicle.
B. Your insurer would be looking for the owner’s policy to pay
its limits first.
Insurance for Ride‐Sharing Vehicles: What’s Covered and What’s Not …
Questions and Answers on Ride-Sharing developed by the
Property Casualty Insurers Association of America:
1. Ride-Share drivers have personal automobile insurance, and the TNCs
say they have $1 million commercial liability insurance, isn’t that
enough? The insurance gap isn’t about how much insurance there
is as much as it is about when it applies. All of the coverage
supplied by the TNCs are “contingent” on the driver’s personal lines
policy not providing coverage. While the TNCs may interpret
personal auto insurance policies as providing some coverage for
TNC activities, insurers clearly do not interpret their policy
language that way. Personal auto insurance policies are not
intended to cover the higher risks associated with using a car for
commercial purposes. Just about every standard auto insurance
policy contains some form of a livery exclusion which means
carrying passengers for hire.
9
10/2/2016
Insurance for Ride‐Sharing Vehicles: What’s Covered and What’s Not …
As a result, any damages or losses sustained when the car is being used
for TNC activities will not be covered by the personal auto policy.
Additionally it will not provide coverage for the driver or passenger
if they are hit by an uninsured or underinsured driver. There is also
no coverage to repair the driver’s vehicle if it is damaged while in
use as a ride-sharing vehicle.
PCI is advocating for clear guidelines regarding when the TNC
coverage applies. Without clarification, the TNCs could
challenge each and every coverage determination made by a
personal auto insurer. That means delays in compensating
the victims and costs incurred with handling claims and
litigation for the personal lines insurers, costs that are
reflected in the loss costs that affect the premiums of every
driver in the state, in effect subsidizing the economic activity
of TNC drivers and companies.
Insurance for Ride‐Sharing Vehicles: What’s Covered and What’s Not …
2.
What type of insurance coverage is appropriate?
The insurance marketplace is always evolving with new product offerings.
PCI is advocating for legislative and regulatory approaches to ride sharing
that protect the public while not stifling insurers’ ability to innovate and
develop products to meet marketplace demands. However, TNC drivers
should talk with their insurer about how they plan to use their vehicle to
ensure they are protected if an accident occurs. Driving a car as a livery
presents higher risk than normal personal use of a car. Insurance
coverage needs to specifically apply to these activities.
3. What concerns do insurance companies have regarding ride
sharing programs?
The insurance industry wants to ensure that the personal and
financial safety of consumers, passengers and drivers are
protected. Currently there are not clear guidelines to ensure that
vehicles used in these programs are properly insured. It also is not
always clear when the TNC’s coverage is activated, which could
leave drivers uninsured while they are on the road. The potential
for coverage gaps put everyone at risk.
10
10/2/2016
Insurance for Ride‐Sharing Vehicles: What’s Covered and What’s Not …
4. What changes do insurers want to see?
TNC drivers should have insurance that specifically covers
transportation network activities and does not leave gaps in
coverage. Transportation network program participants (car
owners, drivers and passengers) should have disclosures on
coverage issues as part of contracts/usage agreements so
they can know where they stand regarding insurance
coverage while they’re involved with a transportation
network program. Additionally, vehicle owners have a
responsibility to purchase insurance appropriate to the way
they use their vehicles.
TNC Insurance Coverage Periods 11
10/2/2016
Insurance for Ride‐Sharing Vehicles: Both Uber and Lyft have been working with private passenger
auto companies to encourage them to come up with a solution for
drivers, especially for Period One.
Several carriers have added coverage for ridesharing in Period One
via either endorsement or new policy wording including Allstate,
Farmers, GEICO, Liberty Mutual/Safeco, MetLife Progressive, State
Farm, and USAA. We have not seen anything placed on file for use
in MA, although Safeco has shared its Agent Quick Reference on
Safeco Auto Ridesharing Coverage with us.
In addition, Erie Insurance is offering its insureds a “business use”
coverage designation, available initially in Illinois and Indiana. And
a startup company called Metromile, a managing general agency
for National General Insurance, provides coverage for Uber drivers
in California, Illinois, and Washington.
Insurance for Ride‐Sharing Vehicles: •
In MA, AIB has a Personal Vehicle Sharing Exclusion which
says:
•
•
•
“We will not pay any claim for injury or property damage under
the policy, while your auto is being used in a personal vehicle
sharing program. Such programs allow the use of your auto by
a person other than you or a household member under an
agreement and with payment to you. This exclusion does not
apply to Personal Injury Protection (Part 2).”
This exclusion would apply to the second type of ridesharing vehicle … FlightCar/Turo/GetAround … where the
service helps the owner rent his/her car to others for a fee.
No special exclusionary endorsement is necessary for the
TNC exposure since current versions of the personal auto
policy being used in MA contain a “public or livery
conveyance” exclusion, and most company eligibility rules
exclude vehicles used as a public or livery conveyance.
12
10/2/2016
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
•
•
•
Currently, 33 states have put TNC laws or regulations in place.
Massachusetts became the 34th state after a Conference
Committee worked out a joint version of the TNC bill which
was passed by both Houses and signed into law on August 5,
2016.
Governor Baker signed into law a measure which will
regulate app-based ride-hailing services. The new law
requires background checks by both the TNCs and a new
division of the Department of Public Utilities created by the
new law.
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
• TNC vehicles will be permitted to operate at the Boston
Convention Center and Logan Airport.
• A 20 cent fee on every ride will be mandated to help pay or
infrastructure improvements and contribute to a fund that
will help out the taxi industry.
• The new law also mandates the following insurance limits:
13
10/2/2016
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
1.
2.
A driver who is logged onto the TNC app and is available to
receive transportation requests, but is not engaged in a prearranged ride, must have liability limits of $50,000/$100,000
and $30,000 of property damage insurance, as well as UM
and PIP as required by law. The insurance may be held by the
TNC driver, the TNC or a combination of both.
When a TNC driver is engaged in a pre-arranged ride, the
driver must have liability insurance of at least $1,000,000 for
death, bodily injury and property damage, as well as UM and
PIP as required by law. The insurance may be held by the TNC
driver, the TNC, or a combination of both.
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
3.
4.
5.
In every instance where insurance maintained by a TNC driver
to fulfill the insurance requirements has lapsed, failed to
provide the required coverage, denied a claim for the required
coverage or otherwise ceased to exist, insurance maintained by
a TNC shall provide the coverage required beginning with the
first dollar of a claim, and shall have the duty to investigate and
defend the claim.
Coverage under an automobile insurance policy maintained by
the TNC shall not be dependent on a personal automobile
insurer first denying a claim nor shall a personal automobile
insurer be required to first deny a claim.
Insurance required by this section must be placed with an
insurer authorized to do business in the commonwealth or, if
such coverage is not available, from any admitted carrier, then
with a surplus lines insurer eligible under Massachusetts law.
14
10/2/2016
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
• Insurers that write automobile insurance may exclude any and
all coverage afforded under the policy issued to an owner or
operator of a vehicle for any loss or injury that occurs while a
driver is providing transportation network services or while a
driver provides a pre-arranged ride. This right to exclude all
coverage may apply to any coverage included in an automobile
insurance policy including, but not limited to: (i) liability
coverage for bodily injury and property damage; (ii) personal
injury protection coverage; (iii) uninsured and underinsured
motorist coverage; (iv) medical payments coverage; (v)
comprehensive physical damage coverage; and (vi) collision
physical damage coverage.
• Nothing in this section implies or requires that a personal
automobile insurance policy provide coverage while the TNC
driver is logged on to the TNC‘s digital network, while the TNC
driver is engaged in a pre-arranged ride or while the TNC driver
otherwise uses a vehicle to transport riders for compensation.
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
• Nothing shall preclude an insurer from providing coverage for
the TNC driver’s vehicle if the insurer chooses to do so by
contract or endorsement.
• Automobile insurers that exclude the coverage described in this
section do not have a duty to defend or indemnify any claim
expressly excluded by a policy. Nothing in this section
invalidates or limits an exclusion contained in a policy, including
any policy in use or approved for use in the commonwealth
before the enactment of this section that excludes coverage for
vehicles used to carry persons or property for a charge or
available for hire by the public.
15
10/2/2016
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
• Here are the current regulatory requirements in MA:
• 540 CMR 2.05 Vehicle Registrations Requirements
(4½).
(a) A TNC Driver shall not provide Transportation Services to a
Passenger unless a Transportation Network Company has
pre-arranged for the TNC Driver to provide Transportation
Services to the passenger. A TNC Driver shall not solicit or
accept on-demand summoning of a ride, otherwise known
as "street hail" or "hail pick-up".
(b) A Transportation Network Company shall make available to
prospective TNC Riders the method by which the
Transportation Network Company calculates fares or the
applicable rates being charged and an option to receive an
estimated fare.
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
• Here are the current regulatory requirements in MA:
• 540 CMR 2.05 Vehicle Registrations Requirements
(4 3/4).
(a) The Department of Public Utilities (DPU) shall act as the licensing
authority to which a Transportation Network Company shall apply
for a certificate to provide TNC Services. The DPU may issue such a
certificate if the DPU finds that public convenience and necessity
require that the applicant be allowed to provide Transportation
Services.
(b) The DPU shall have general supervision and regulation of, and
jurisdiction and control over Transportation Network Companies
as common carriers.
(c) The DPU shall ensure that, before arranging for a Transportation
Network Driver to provide Transportation Services, a
Transportation Network Company shall:
16
10/2/2016
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
(c) The DPU shall ensure that, before arranging for a
Transportation Network Driver to provide Transportation
Services, a Transportation Network Company shall:
1. Conduct, or have a third party conduct, a background
check that shall include Criminal Record Information (CORI)
and Multi-state/Juris Criminal Records Locator or other
similar nationwide database, and National Sec Offender
Registry database; and
2. Conduct, or have a third party conduct, a driving record
check.
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
(d) The DPU shall further ensure that:
1. A Transportation Network Company shall not arrange for a
passenger to be transported by any Transportation
Network Driver who appears on the National Sex Offender
Registry or who has a conviction in the past ten years for
crimes of violence, sexual abuse, driving under the
influence of drugs or alcohol, hit and run, attempting to
evade the police, driving with a suspended or revoked
license, felony robbery, or felony fraud.
2. A Transportation Network Company, and the TNC Drivers
the Transportation Network Company arranges to provide
Transportation Services, shall maintain appropriate liability
insurance.
17
10/2/2016
Insurance for Ride‐Sharing Vehicles: State Legislation and Regulation
(e) In the event that the DPU is unwilling or unable to ensure that
Transportation Network Companies in general or a
Transportation Network Company in particular comply with
the above requirements, the Registrar of Motor Vehicles shall
have the power to prohibit the operation of some or all
Personal Transportation Network Vehicles or take such further
action with respect to such vehicles as otherwise authorized
by law or regulations.
10/2/2016
36
Ride‐Sharing Vehicles Examples – Uber/Lyft
1. Your Client, a 25 year old who owns a fairly new 4-door Honda
Accord, calls to tell you he is considering becoming an Uber
driver. He wants to know if his Massachusetts Auto Policy will
cover him while he’s driving someone around.
a) Sure, why not?
b) How lucky are we feeling today????
c) NO NO NO NO NO!!!!!!!!!!!!!!!!!!!!!!!
18
10/2/2016
10/2/2016
37
Ride‐Sharing Vehicles Examples – Uber/Lyft
1. This question is being asked a lot these days. Unfortunately,
the Massachusetts Personal Automobile Policy excludes
coverage for “anyone injured while occupying your auto while
it is being used as a public or livery conveyance.” Specifically,
the policy excludes damage to someone else’s property as
well as any optional insurance coverage including Optional
Bodily Injury to Others, Medical Payments, Collision, Limited
Collision, Comprehensive, Substitute Transportation, Towing
and Labor and Bodily Injury Caused by an Underinsured Auto
“while your auto is being used as a public or livery
conveyance.”
10/2/2016
38
Ride‐Sharing Vehicles Examples – Uber/Lyft
1. Since there is no coverage under the MAP for this exposure,
Uber drivers/vehicles are NOT eligible to be placed in the
MAIP. They are also not eligible to be placed in CAR’s
commercial auto plan. Uber vehicles/drivers would, however,
be eligible to be placed in CAR’s Taxi/Limo/Car Service
program … BUT, the Taxi/Limo/Car Service program requires
vehicles to have appropriate taxi or livery plates.
The TNC regulation permits Uber/Lyft vehicles to have private
passenger plates which makes them ineligible for the
Taxi/Limo/Car Service program. It is also
our understanding that, although we have
not seen the Uber policy, an Uber driver
with a BAP would not qualify for coverage
under Uber’s James River Insurance
Company policy.
19
10/2/2016
10/2/2016
39
Ride‐Sharing Vehicles Examples – Flightcar
2. Your client calls you to report a claim.
His vehicle was totaled while being
driven by someone other than your
client or a household member. You are
FINALLLY able to determine that your
client is a member of Flightcar. When
he travels for business, he makes his car available for rent
through Flightcar to travelers visiting Boston for business or
pleasure. In return, your client receives a $10 daily rental
payment, free parking while he is away, a free car wash and
free storage of personal items left in his vehicle. Will your
client’s policy cover the damage to his vehicle?
a) Yes, as long as the vehicle is being used with your permission.
b) No, no, no, no, no!!!!
10/2/2016
40
Ride‐Sharing Vehicles Examples – Flightcar
2. Flightcar advertises that there is a $1
million liability coverage to protect the
vehicle owner when being used by a
renter. Flightcar also states that collision,
theft and “damage” insurance is available
to cover the ENTIRE value of the car! Flightcar states that it will
also cover mechanical breakdown that results from improper
usage of the vehicle during the rental. Flightcar also states it
will “arrange a car for use” if the vehicle is stolen or damaged
and not available for the owner’s use. It sounds too good to
be true. I, personally, would like to see the policy, but I’m sure
your client’s don’t care.
20
10/2/2016
10/2/2016
41
Ride‐Sharing Vehicles Examples – Flightcar
2. If one believes everything they read …
then supposedly the MAP will NOT have
to be involved when the vehicle is
“rented” to one’s fellow traveler.
However, how long will the claims
process take under the car-sharing/renting firm’s insurance,
and exactly how does the policy read?
Must the MAP carrier be informed of this new and interesting
activity even though, supposedly, it won’t have to be
involved? I think so. This IS an increase in risk whether or not
the MAP ultimately has to pay out. This COULD be considered
a business activity depending on the number of rental
situations.
10/2/2016
42
Ride‐Sharing Vehicles Examples – Flightcar
2. We should NOT forget the infamous
General Provision 18 Failure to Furnish
Information and 19 Changes Which
Affect Premium.
21
10/2/2016
10/2/2016
43
Ride‐Sharing Vehicles Examples – Flightcar
2. The policy obligates an insured to
discuss changes in exposures DURING
the policy period … or bad things can
happen such as claim denial.
If there is a renewal questionnaire, then the insured is
obligated to discuss a change in exposure.
10/2/2016
44
Ride‐Sharing Vehicles Examples – Flightcar
2. The AIB renewal questionnaire language
states:
It will not be necessary to return this
form to your agent or company
representative unless you wish to make
any changes or unless the information contained on the
Coverage Selections Page and in the form is inaccurate or
obsolete. You must inform us of any changes which may have
a material effect on your insurance coverage or premium
charges, including the description, ownership, type of usage
and place of garaging of the auto(s) and the household
members and individuals who customarily operate the
auto(s).
22
10/2/2016
10/2/2016
45
Ride‐Sharing Vehicles Examples – Flightcar
2. There is also a question about “business”.
A normal client might not think what
they are doing IS a business … but let’s
face it … anyone with half a brain has to
realize that this IS changing the “type of
usage.” Every year the insured receives a Coverage
Selections Page (declarations page). If the company
still uses the AIB model, then either the back of the
coverage selections page or the second page of the coverage
selections page states:
10/2/2016
46
Ride‐Sharing Vehicles Examples – Flightcar
2. NOTICE: You must notify us of changes that have occurred prior to
the renewal of this policy and during the policy period. It is a crime
to knowingly provide false or fraudulent information for the
purpose of defrauding an insurance company. If you or someone
else on your behalf has knowingly given us false, deceptive,
misleading or incomplete information and if such false, deceptive,
misleading or incomplete information increases our risk of loss, we
may refuse to pay claims under any or all of the Optional Insurance
Parts and we may cancel your policy. Such information includes the
description and the place of garaging of the vehicle(s) to be
insured, the names of all household members and customary
operators required to be listed and the answers given above for all
listed operators. We may also limit our payments under Part 3 an
Part 4. Check to make certain that you have correctly listed all
operators and the completeness of their previous driving records.
The Merit Rating Board may verify the accuracy of the previous
driving records for all listed operators.
23
10/2/2016
10/2/2016
47
Ride‐Sharing Vehicles Examples – Flightcar
2. The AIB auto application does not ask if
the vehicle is rented to others, yet Rule
27 in the AIB and MAIP manuals state
that a vehicle rented to others is NOT
ELIGIBLE for a MA personal auto policy.
A motor vehicle of the private passenger or station wagon type that
is owned or leased under contract for a continuous period of at least
twelve months by one or more individuals, excluding (1)
partnerships, (2) corporations, (3) unincorporated business
associations, and (4) other legal business entities with a federal
employer identification number, and is not used as a public or livery
conveyance nor rented to others. A vehicle which meets the
conditions of Rule 31, regarding the transportation of fellow
employees, students or others for consideration, is included in this
definition, provided such vehicle is not registered for carrying
passengers for hire.
10/2/2016
48
Ride‐Sharing Vehicles Examples – Flightcar
2. Many companies have adopted the
Personal Vehicle Sharing Exclusion –
M-0108-S:
MASSACHUSETTS ENDORSEMENT – M-0108-S
Personal Vehicle Sharing Exclusion
We will not pay any claim for injury or property damage under the
policy, while your auto is being used in a personal vehicle sharing
program. Such programs allow the use of your auto by a person
other than you or a household member under an agreement and
with payment to you. This exclusion does not apply to Personal
Injury Protection (Part 2).
[Ed. 09-13]
24
10/2/2016
10/2/2016
A Couple More Examples – ZipCar
3. My client called us regarding a “ZipCar.” He wants to use
ZipCars when he travels for business because it’s cheaper
than traditional car rental agencies.
Will his MA auto policy cover him when using ZipCars all over
the country?
10/2/2016
A Couple More Examples – ZipCar
3. ZipCar members are free to drive cars by the hour or day with
gas and insurance included. ZipCar sedans, hybrids, vans and
more are available in neighborhoods, cities and airports
around the world.
If a ZipCar member has a personal auto policy, the member’s
policy would follow when renting a personal automobile with
the permission of the owner as long as the member is not
regularly using the same car. If the member will use the same
car often, the “Use of Other Auto” endorsement could be
added. Extension of coverage under the personal auto policy is
not worldwide and would be limited to the United States, the
U.S. territories and possessions, Puerto
Rico, and Canada.
25
10/2/2016
10/2/2016
A Couple More Examples – AmRide
4. My client is the matron of honor for her sister’s
upcoming wedding. She is hosting a Bachelorette
party for her sister… a pub crawl around Boston.
She and one of the other bridesmaids are planning to drive
the group to the first pub in their minivans and then have
two AmRide drivers meet them and take over the driving
when the group moves to the next pub. The client wants to
be sure that there will not be any insurance issues in the
event there is an accident. Will your clients’ personal auto
policy respond if the AmRide driver is involved in an accident
and one of the bridesmaids is injured?
10/2/2016
A Couple More Examples – AmRide
4. With AmRide, I’m hiring someone to drive my
car… could that be an employee? I’m providing
the “tools” and directing what you do … would
I need W/C?
This concept has been around for years … people paying
others to drive their car to say … Florida … for them, so they
can take the plane. Unless I hire the same person (driver) too
much, I wouldn’t have to tell my auto carrier… the vehicle
owner is not “committing” a public or livery conveyance
activity … the driver very well could be. The AmRide
website says: “AmRide and our drivers are insured,” but
there’s no further explanation of what they mean by
“insured”. AmRide charges $36.95 per hour for the driver but
offers a AAA member price of $30.95 per hour.
26
10/2/2016
Thanks for Attending!
If you have additional questions or need more information, you
may email me at:
• [email protected]
• or reach me by phone at 800-972-9312 or 508-634-2900
27
28

Zipcar: A service where Zipcar
members rent cars owned by Zipcar
for personal or business use






FlightCar/RelayRides/GetAround and
Other Ride-Sharing Services: Owner
rents his/her car to others through the
ride-sharing service for a fee
Vehicle Type
UBER/Lyft/SideCar: Hailed
electronically to provide rides to other
persons for a fee
If You are the Driver/Owner
Not eligible for MAP which excludes coverage for
“anyone injured while occupying your auto while
it is being used as a public or livery conveyance.”
Specifically excludes Property Damage and all
Optional Insurance Parts.
Vehicles used in this manner would not be eligible
for the MAIP or CAR but would be eligible for the
Taxi/Limo/Car Service program with livery plates
Would not qualify for a MAP because the vehicle
does not meet the private passenger definition: a
motor vehicle of the private passenger or station
wagon type that is owned or leased under contract
for a continuous period of at least twelve months
by one or more individuals, excluding (1)
partnerships( 2) corporations, (3) unincorporated
business associations, and (4) other legal business
entities with a federal employer identification
number, and is not used as a public or livery
conveyance nor rented to others.
Zipcar members are free to drive cars by the hour
or day with gas and insurance included. Zipcar
sedans, hybrids, vans and more are available in
neighborhoods, cities and airports around the
world.
If a Zipcar member has a personal auto policy, the
policy would follow the member when renting a
personal automobile with the permission of the
owner as long as the Zipcar member is not regularly
using the same car. If the Zipcar member will use
the same car often, the “Use of Other Auto”
endorsement could be added.
Extension of the coverage under the personal auto
policy is not worldwide and would be limited to the
United States, the U.S. territories and possessions,
Puerto Rico, and Canada.






May 2016
If you are a passenger in a car someone else is
renting from Zipcar or a similar service, your
policy’s Personal Injury Protection, Uninsured
Motorist, Optional Bodily Injury, Medical
Payments and Underinsured Motorist Coverage
will follow you as a passenger in your own or
someone else’s vehicle.
Your insurer would be looking for the owner’s
policy to pay its limits first.
If You are a Passenger
Your own policy’s Personal Injury Protection,
Uninsured Motorist, Optional Bodily Injury,
Medical Payments, and Underinsured Motorist
coverages follow you as a passenger in your own
vehicle or someone else’s vehicle.
Your policy would not be primary. The owner’s
policy must pay its limits before your policy will
respond.
If you are a passenger in a car someone else is
renting through one of these services, your
policy’s Personal Injury Protection, Uninsured
Motorist, Optional Bodily Injury, Medical
Payments and Underinsured Motorist Coverage
will follow you as a passenger in your own or
someone else’s vehicle.
Your insurer would be looking for the owner’s
policy to pay its limits first.
How will my policy respond to Ride-Sharing situations?
Agent Quick Reference
Safeco Auto Ridesharing Coverage
Safeco Insurance®
Safeco’s personal auto policy excludes vehicles being used as a “public or livery conveyance” such as taxis. Safeco
now offers Auto Ridesharing Coverage for drivers who work for a ride hailing company, such as Uber or Lyft, driving
their personally owned vehicles. A ride hailing company is also known as a Transportation Network Company (TNC).
Drivers use an online-enabled Transportation Network Platform (TNP) application, or digital network, to offer rides,
locate and accept paying riders, and accept payment for the ride. The endorsement covers a gap in the driver’s auto
insurance coverage between the time the driver logs onto the TNP application to look for a passenger and the time the
driver accepts a passenger’s request for a ride via the application.
See the FAQ below for more details about Safeco’s Auto Ridesharing Coverage.
© 2016 Liberty Mutual Insurance. These materials may contain confidential information.
Do not copy or disclose without prior permission from Liberty Mutual Insurance.
The audience for this information includes insurance agents and brokers nationwide and is
therefore general in nature. Every agent and broker is responsible for knowing the
guidelines and laws that govern rating, underwriting and claims handling in their states.
The materials herein are for training purposes only. Nothing stated herein creates a
contract. All statements made are subject to the provisions, exclusions, conditions and
limitations of the applicable insurance policy. If the information in this training conflicts with
the policy language that it describes, the policy language prevails.
29
Safeco Auto Ridesharing Coverage
How to quote Safeco Auto Ridesharing Coverage
On the Q&I Coverages screen, on the Ridesharing row, select Yes from the drop down list for the vehicle, or vehicles,
to be used for a TNC.
NOTE: This coverage is at the vehicle-level, NOT at the policy-level.
© 2016 Liberty Mutual Insurance. These materials may contain confidential information. Do not copy or disclose
without prior permission from Liberty Mutual Insurance.
Page 2
30
Safeco Auto Ridesharing Coverage
In the Coverages section of the Summary screen, on the Ridesharing row, ensure that the Limit column displays Yes,
and that the premium displays. As with all the premium quotes, Q&I automatically calculates the Ridesharing premium.
© 2016 Liberty Mutual Insurance. These materials may contain confidential information. Do not copy or disclose
without prior permission from Liberty Mutual Insurance.
Page 3
31
Safeco Auto Ridesharing Coverage
Frequently Asked Questions
The Basics
Q. In which states is the Safeco Auto Ridesharing Coverage available?
A. Initially, CO, IL, and IN. It will be rolled out to more states at a later date.
Q. Who is eligible to purchase the Safeco Auto Ridesharing Coverage?
A. Any driver using their personal auto for a TNC. The endorsement can be added at the time a new policy is written
starting on May 15th for customers new to Safeco.
Q. How much does the endorsement cost?
A. The cost will be a % of your total vehicle premium that will average ~$100 annually.
Agency Sales Process
Q. Will the Safeco Auto Ridesharing Coverage show up on the Safeco System? Where should Agents look for this in
the quoting process?
A. The endorsement will be a selection on the Coverages screen.
Q. How, when, and what amount will I get paid for selling the Safeco Auto Ridesharing Coverage?
A. The endorsement will be part of the policy premium and agents will be paid as they currently are paid.
Additional Questions Drivers Might Ask
Q. Why do I need this endorsement? Doesn’t my personal auto policy already cover me?
A. Your personal auto policy excludes any use of your vehicle for a TNC. This endorsement covers you and your auto
during the “ridesharing gap,” from the time the TNC app is turned on until a customer accepts a ride.
Q: What type of insurance coverage does the TNC provide its drivers once the insured has accepted a request for
transportation and a passenger is occupying the vehicle?
A: The TNC will provide primary bodily injury and property damage liability coverage, and comprehensive and collision
coverage. The amount of coverage and any deductibles will depend on the state requirements. The TNC policy
typically will not provide Med Pay or UM/UIM coverage. The customer should check with their TNC on the specifics.
Q. What is not covered?
A. From the time when you accept a ride via the app, when you pick up the passenger(s), and the time when a
passenger(s) is in your vehicle being transported to their destination. The Transportation Network Company (i.e. Uber
or Lyft) provides insurance during this time.
Q. What coverages are available?
A. All coverages [Primary Liability (BI & PD), Comprehensive, Collision, Medical Payments, etc.], will be available for
purchase as part of your personal auto policy. All coverages and coverage levels you purchased for your personal-use
auto policy, including optional coverages, will extend during this period of time. The endorsement applies only to the
vehicle(s) identified for TNC use; it does not provide coverage for other vehicles on your Safeco Auto policy.
Q. What if I have an accident?
A. Please call the Safeco Claims department to report the claim.
© 2016 Liberty Mutual Insurance. These materials may contain confidential information. Do not copy or disclose
without prior permission from Liberty Mutual Insurance.
Page 4
32
Safeco Auto Ridesharing Coverage
Q. When will the endorsement be available to inforce customers?
A. Inforce customers will be eligible for Safeco’s RideSharing Coverage at the time of their renewal or after the
following dates in each of the participating states, whichever comes first:



Colorado: June 30th, 2016
Illinois: July 9th, 2016
Indiana: June 27th, 2016
© 2016 Liberty Mutual Insurance. These materials may contain confidential information. Do not copy or disclose
without prior permission from Liberty Mutual Insurance.
Page 5
33